Loan app scam: Case needs multi-national investigation, says Nepal DIG

DIG Tek Prasad Rai, information officer of Nepal police

Chinese nationals setting up illegal call centres in Nepal to target Indians through instant loan apps have become a pain point for law enforcement authorities in Kathmandu. Authorities in Nepal said the police can't do much against the Chinese nationals as they do not trouble locals. DIG Tek Prasad Rai, information officer of Nepal police, said better coordination between India, Nepal and China can curb the cybercrimes.

Acting on a series of reports in mid-day, the Nepal police have in the past two weeks raided three illegal call centres and arrested 190 people, including 5 Chinese nationals and two Indians. DIG Rai said the staff at the call centres - local Nepalis - were hired in the guise of promotional activities but were forced to abuse Indian borrowers and blackmail them with morphed pictures to extort money. Excerpts from the interview:

Also read: Loan app fraud: 12th pass Bihar man was second in command for Chinese kingpin

mid-day's Faizan Khan with DIG Tek Prasad Rai at the Nepal police headquarters in Kathmandu

How come illegal call centres have been running right under the nose of Nepal police and it went unnoticed for more than 2 years?
It is not true that these centres are running right under our noses. The call centre was registered under the Companies Act in Nepal and the Chinese nationals came on business visas. The centres were approved for marketing purposes but they indulged in illegal activities. This is not the first time we have conducted raids in such centres. The first [raid] happened in December 2019 when more than 120 Chinese nationals were deported. The centres were targeting only Indian nationals by providing easy loans. We have kept our surveillance on these centres.

Why are Chinese nationals not prosecuted in Nepal, instead of being deported to their home country?
How can we act? When there is no complaint, how can we act? They use such technology that it is very difficult to retrieve the data, but this time we have taken serious cognisance of this issue knowing the kind of trauma these centres have created for Indian nationals. We have also shared the details with the Indian government, which can be helpful for Indian police forces to investigate their cases as part of a larger conspiracy. We are currently probing them for creating a public nuisance. If we get victims from India, we will be able to invoke stringent sections of existing laws.

What is the biggest hurdle in your probe?
As I said, there is no complaint pertaining to digital loan app cases, but I see that this case requires an international probe where both India, China, and Nepal can help one another to stop this cybercrime. Here groups are using our territory to target other nations.

What is the current status of your case?
We cannot reveal the specifics of the ongoing investigation, but it is moving in the right direction; we are awaiting forensic reports; and the matter is being investigated by the special branch, Cyber Bureau, and local police.

What action has been taken against locals who have rented their premises to these Chinese nationals despite knowing about their illegal work?
Not everyone is aware of the activity, but in a few centres we have found the connivance of the owner of the premises and we will take action against them as per law.

What reason do you see behind a lot of Chinese nationals coming to Nepal and establishing call centres with the sole aim of targeting Indians?
There are many reasons. One is that they can't run this in India because if a case is reported, Indian authorities will come after them. The other is if they are targeting Indians from Nepal, the Nepal police will find it difficult to act without a complaint.